Suppose the exchange rate for the U.S. dollar falls. This could be caused by
A) a decrease in U.S. import demand.
B) an increase in the world demand for U.S. exports.
C) an increase in the U.S. interest rate differential.
D) a fall in the expected future exchange rate.
D
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If a principle is reducing agency costs by gathering information about the agent's type, he is most likely trying to solve the problem
a. Adverse selection b. Moral hazard c. Both of the above d. None of the above
Which of the following is an implicit cost to Mondo Manufacturing, Inc? a. Payments of wages to its office workers
b. Property taxes. c. Depreciation charges on company owned automobiles and trucks. d. Rent paid for the use of equipment.
Under perfect competition and monopolistic competition, profits are zero in long-run equilibrium.
Answer the following statement true (T) or false (F)
If the interest rate is below the equilibrium interest rate, then the quantity __________ of money exceeds the quantity __________ of money, and there is a __________ of money
A) supplied; demanded; shortage B) supplied; demanded; surplus C) demanded; supplied; shortage D) demanded; supplied; surplus